Hi, I have filed a lien on a job and the customer is now willing to pay. They've requested a conditional final. Is that still the standard document that I should use to agree to remove the lien? Or is there a 'conditional final for lien removal document' or something to that effect?
Generally speaking, it's common for a lien claimant to receive a promise for payment in exchange for the release of a lien claim. Of course, it's unwise to actually release the lien claim until payment is in hand. Often, it makes sense to even wait until the money hits the company's bank account (since bounced checks can create problems). For further discussion: If I’ve Been Promised Payment, Should I Wait to File a Mechanics Lien?
Unfortunately, there's no such thing as a conditional lien release filing. With that being said, sending a final conditional lien waiver in exchange for payment could be a showing of good faith. Conditional lien waivers don't waive any rights until payment is actually made, but once payment occurs, they're fully effective and binding. So, they're a good tool when you're in a standoff about when payment will occur and when the lien will be released. Levelset discusses that tension here: Construction Lien Release Process: the Timeline is Tricky.
With a conditional final waiver in hand, the customer can know that once the check clears, lien rights are waived and the filed lien is effectively useless. Granted, the lien must still be released (and will linger in the property record if it isn't actually released) - more on that here: Do you Have to Cancel a Mechanics Lien, or Will It Expire?
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